
Closed
ISED — Artificial intelligence (AI)
Supports testing innovative AI prototypes for Canadian government needs
Last Update: March 4, 2026
Funding available
$ 2,300,000
Timeline
- Open Date : June 27, 2025
- Closing date : July 22, 2025
Location
Canada
Overview
The Innovation, Science and Economic Development Canada (ISED) Artificial Intelligence (AI) Testing Stream provides up to $2,300,000 in funding to support the procurement, testing, and evaluation of late-stage pre-commercial AI and robotics prototypes in real-world government environments. Eligible activities include the development and deployment of innovative solutions addressing automation, advanced data processing, intelligent decision-making, sensor technology, and communications for federal priorities.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop a new product or service
Eligible Funding
- Maximum amount : 2,300,000 $
Timeline
- Open Date : June 27, 2025
- Closing date : July 22, 2025
Eligible candidates
Eligible Industries
- Agriculture, forestry, fishing and hunting
- Manufacturing
- Transportation and warehousing
- Information and cultural industries
- Professional, scientific and technical services
- Educational services
- Health care and social assistance
- Public administration
Location
- Canada
Legal structures
- For-profit business
- Sole proprietorship
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
- Startups
Next steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Testing and evaluation of innovative artificial intelligence (AI) and robotic process automation (RPA) prototypes for government use.
- Deployment and assessment of advanced sensor, surveillance, and communication technologies to enhance data collection and operational capabilities.
- Development and implementation of AI-driven solutions for automating administrative workflows and improving decision-making processes.
- Integration of multi-sensor data fusion, edge computing, and real-time data analysis technologies to support operational environments.
- Prototyping advanced technologies for object detection, predictive maintenance, and secure data processing within government settings.
Eligibility
Who is eligible?
- Canadian companies with pre-commercial innovative prototypes in artificial intelligence (AI), robotic process automation (RPA), and automated decision-making
- Businesses developing advanced sensor and surveillance technologies
- Firms specializing in multi-sensor fusion and data patterning technologies
- Canadian enterprises advancing operational technology, IT infrastructure, or communication technologies
- Small and medium-sized enterprises (SMEs) developing innovative solutions for government and military applications
Who is not eligible
- Companies that are not Canadian offerors, meaning those without a permanent place of business in Canada.
- Organizations whose proposal includes innovations that are already commercially available or have previously been sold on a commercial basis.
- Businesses proposing an innovation that has already been awarded a contract under the Build in Canada Innovation Program (BCIP), the Canadian Innovation Commercialization Program (CICP), or the Innovative Solutions Canada (ISC) Testing Stream, unless specific conditions for reapplication are met.
- Offerors not meeting the requirements for Canadian content (minimum 80% Canadian goods or services in the proposal).
- Companies that do not own or have exclusive rights to the intellectual property (IP) of the proposed innovation.
Eligible expenses
- Costs associated with the development and testing of late-stage pre-commercial prototypes in real-life operational environments.
- Procurement of Canadian goods or Canadian services directly involved in the prototype testing process (minimum 80% of total proposal costs must be Canadian goods or services).
- Expenses required to secure and maintain necessary certifications, licenses, and approvals to safely deploy and test the proposed innovation.
- Personnel salaries and wages for Canadian employees and contractors involved in the prototype testing and operational deployment.
- Costs related to risk assessment and the implementation of mitigation measures to ensure safety, security, and compliance during the operational test.
Eligible geographic areas
- Companies with a permanent place of business in Canada and conducting activities within Canada.
Additional information
- The Pathway to Commercialization (PTC) allows eligible SMEs whose innovations reach market-readiness (TRL 9) after a Testing Stream contract to sell directly to the Government of Canada.
- Innovations placed on the PTC source list may be available for government purchase for up to three years following successful assessment.
- Participation in the PTC precludes eligibility for future Testing Stream contracts for the same innovation.
- All proposals must clearly identify which specific outcomes they address from the call for proposals.
Contacts
Frequently Asked Questions about the ISED — Artificial intelligence (AI) Program
Here are answers to the most common questions about the ISED — Artificial intelligence (AI). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the ISED — Artificial intelligence (AI)?
The Innovation, Science and Economic Development Canada (ISED) Artificial Intelligence (AI) Testing Stream provides up to $2,300,000 in funding to support the procurement, testing, and evaluation of late-stage pre-commercial AI and robotics prototypes in real-world government environments. Eligible activities include the development and deployment of innovative solutions addressing automation, advanced data processing, intelligent decision-making, sensor technology, and communications for federal priorities.
How much funding can be received?
ISED — Artificial intelligence (AI) Funds up to $2,300,000 of admissible expenses.
What is the deadline to apply?
The application deadline for this grant program was July 22, 2025.
Who is eligible for the ISED — Artificial intelligence (AI) program?
To be eligible for the ISED — Artificial intelligence (AI) program, you must:
The applicant must be a Canadian company with a place of business in Canada.
At least 80% of proposal costs must be Canadian goods or services.
The applicant must own or hold exclusive rights to the innovation's intellectual property.
What expenses are eligible under ISED — Artificial intelligence (AI)?
Testing and evaluation of innovative artificial intelligence (AI) and robotic process automation (RPA) prototypes for government use.
Deployment and assessment of advanced sensor, surveillance, and communication technologies to enhance data collection and operational capabilities.
Development and implementation of AI-driven solutions for automating administrative workflows and improving decision-making processes.
Integration of multi-sensor data fusion, edge computing, and real-time data analysis technologies to support operational environments.
Prototyping advanced technologies for object detection, predictive maintenance, and secure data processing within government settings.
Who can I contact for more information about the ISED — Artificial intelligence (AI)?
You can contact Innovation, Science and Economic Development Canada (ISED) by email at TPSGC.PASICVoletessai-APISCTestingStream.PWGSC@tpsgc-pwgsc.gc.ca.
Where is the ISED — Artificial intelligence (AI) available?
The ISED — Artificial intelligence (AI) program is available across Canada.
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